If a cardholder uses his/her card improperly, is the Government required to pay the bank?
Yes. When the centrally billed account/card has been used by an authorized account/cardholder to make an unauthorized purchase, the Government is liable for the charge. However, under the terms and conditions of the contract, C.46.1 Government Liability for Centrally Billed Accounts: The Government accepts liability only for those proper charges made by an authorized centrally billed account cardholder using the Card Program but shall not be liable for any unauthorized use. Unauthorized use means the use of a credit card by a person, other than the cardholder, who does not have actual, implied or apparent authority for such use and from which the cardholder receives no benefit.
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